How to Create Work Rules in Japan (Free Template in Japanese and English)

Purpose

1. These rules of employment (the "Rules") set out the matters concerning the work of the workers of Sample Corporation under Article 89 of the Labor Standards Act (the "Act").
2. Matters concerning work that are not set out in these Rules are governed by the Act and other laws and regulations.

Scope of Application

1. These Rules apply to the workers of Sample Corporation.
2. Matters concerning the work of part-time workers and workers employed for a fixed term are set out separately.
3. For the workers in the preceding paragraph, these Rules apply to any matter not provided for in the separate rules.

Compliance with the Rules

The Company is obliged to have workers work under the working conditions set out in these Rules. Workers shall comply with these Rules.

Hiring Procedures

The Company selects applicants through a selection process and hires those who pass it.

Documents to Be Submitted at Hiring

1. A person hired as a worker shall submit the following documents within 2 weeks of the hiring date.
   1. A certificate of the matters in the resident register
   2. A copy of the driving license (only if the person has one)
   3. Copies of qualification certificates (only if the person has any)
   4. Any other documents the Company specifies
2. If any matter in the documents submitted under the preceding paragraph changes, the worker shall promptly notify the Company of the change in writing.

Hiring

1. The Company selects applicants and hires those who pass the selection.
2. A person hired shall submit a certificate of the matters in the resident register and any other documents the Company specifies within 2 weeks of the hiring date, and shall promptly notify the Company of any change in them.

Probationary Period

1. A newly hired worker serves a probationary period of 3 months from the hiring date.
2. If the worker's suitability cannot be judged within that period, the Company may, after explaining the reason to the worker, extend the probationary period by up to 3 months.
3. The Company may shorten or waive the probationary period where it sees fit.
4. A worker found unsuitable during the probationary period may be dismissed. For a worker who has been employed for more than 14 days, the procedure in Article 46, paragraph 2 applies.
5. The probationary period counts toward the length of service.

Statement of Working Conditions

When hiring a worker, the Company states the working conditions by giving the worker a written statement of working conditions, covering wages at hiring, the place of work, the duties (including the scope of possible changes to the place of work and duties), working hours, days off and other conditions, together with these Rules.

Personnel Transfers

1. The Company may order a worker to change the place of work or duties when business needs require it.
2. The Company may second a worker to an affiliated company, while the worker remains employed by the Company, when business needs require it.
3. In the cases of the preceding two paragraphs, a worker may not refuse without a justifiable reason.

Leave of Absence

1. A worker who falls under either of the following is placed on leave of absence for the period stated.
   1. Absence due to a non-work-related injury or illness has exceeded 1 month(s), and the worker cannot work because further treatment is needed: up to 6 months
   2. Any other special circumstance in which leave of absence is found appropriate: the period needed
2. The Company may require a medical certificate to decide whether leave of absence is needed and whether the worker can return.
3. When the reason for leave ends during the leave period, the worker returns to the original duties in principle. If that is difficult or inappropriate, the worker may be assigned to other duties.
4. If a worker on leave under paragraph 1, item 1 has not recovered and cannot work when the leave period ends, the worker retires at the end of the leave period.

Responsibilities

Workers shall be aware of their responsibilities, perform their duties in good faith, follow the Company's instructions and orders, and strive to improve work efficiency and maintain order in the workplace.

Compliance Provisions

1. Workers shall comply with the following.
   1. Not to use the Company's facilities or goods for purposes other than work without permission.
   2. Not to seek personal gain in connection with their duties, or to borrow or accept money or goods improperly from others, or commit any other dishonest act.
   3. To devote themselves to their duties during working hours and not to leave the place of work without a justifiable reason.
   4. Not to act in a way that damages the Company's reputation or credibility.
   5. Not to disclose, during or after employment, any confidential information of the Company or its business partners learned in the course of work.
   6. Not to work under the influence of alcohol.
   7. Not to commit any other act unbecoming of a worker.

Responsibilities and Compliance

1. Workers shall be aware of their responsibilities, perform their duties in good faith, follow the Company's instructions and orders, and strive to maintain order in the workplace.
2. Workers shall comply with the following.
   1. Not to use the Company's facilities or goods for purposes other than work without permission.
   2. Not to accept money or goods improperly in connection with their duties, or commit any other dishonest act.
   3. To devote themselves to their duties during working hours and not to leave the place of work without a justifiable reason.
   4. Not to disclose, during or after employment, any confidential information of the Company or its business partners.
   5. Not to use personal information learned in the course of work for any other purpose.
   6. Not to act in a way that damages the Company's reputation or credibility.

Prohibition of Power Harassment at the Workplace

Workers shall not harm the working environment of other workers through words or conduct that exceed what is necessary and appropriate for work, taking advantage of a superior position in the workplace such as job title or personal relationships.

Prohibition of Sexual Harassment

1. Workers shall not cause other workers disadvantage or discomfort, or harm their working environment, through sexual words or conduct.
2. Workers shall not engage in the conduct in the preceding paragraph toward job applicants or any other persons who are not workers of the Company.

Prohibition of Harassment Related to Pregnancy, Childbirth, Childcare Leave and Family Care Leave

Workers shall not harm the working environment of other workers through words or conduct concerning pregnancy or childbirth, or the use of systems or measures for pregnancy, childbirth, childcare or family care.

Prohibition of All Other Harassment

In addition to the preceding three articles, workers shall not harm the working environment of other workers through any other harassment in the workplace, including words or conduct concerning sexual orientation or gender identity.

Prohibition of Harassment

1. Workers shall not harm the working environment of other workers through any of the following.
   1. Words or conduct that exceed what is necessary and appropriate for work, taking advantage of a superior position in the workplace (power harassment)
   2. Sexual words or conduct (sexual harassment)
   3. Words or conduct concerning pregnancy or childbirth, or the use of systems for pregnancy, childbirth, childcare or family care
   4. Words or conduct concerning sexual orientation or gender identity, and any other harassment in the workplace
2. Workers shall not cause job applicants or other persons who are not workers of the Company disadvantage or discomfort through sexual words or conduct.

Response to Customer Harassment

1. The Company responds firmly to, and protects workers from, words or conduct of customers, business partners, facility users or any other persons connected with the Company's business ("Customers") that exceed what is socially acceptable in light of the nature of the worker's duties and other circumstances and harm the worker's working environment ("Customer Harassment").
2. A worker who experiences Customer Harassment shall promptly report it to a supervisor or other manager and follow their instructions on how to respond. The Company does not, as far as possible, have a worker respond alone, and reports words or conduct that may constitute a crime to the police.
3. For especially serious Customer Harassment, the Company takes the necessary measures within the limits of the law, including ceasing to sell goods or provide services to the Customers concerned.
4. Workers shall not engage in words or conduct toward workers employed by business partners or other employers that exceed what is socially acceptable in light of the nature of the work and other circumstances.

Consultation on Harassment

1. The point of contact for consultations and complaints concerning the harassment set out in Articles 12 to 16the preceding two articles is the Human Resources Department. The staff in charge protect the privacy of the person consulting and handle the consultation appropriately.
2. On receiving a consultation, the Company promptly and accurately confirms the facts and takes measures to support the affected worker and to prevent recurrence.
3. The Company does not dismiss or otherwise treat a worker disadvantageously because the worker consulted, cooperated in confirming the facts, or consulted a Prefectural Labor Bureau.
4. A worker who engages in words or conduct constituting harassment is dealt with strictly under Article 59.

Protection of Personal Information

1. Workers shall take due care in managing information concerning the Company and its business partners and shall not improperly obtain information unrelated to their own work.
2. When transferring to another workplace or job, or leaving the Company, workers shall promptly return all data and documents concerning the Company and its business partners that they managed.

Recording the Start and End Times of Work

Workers shall record their own start and end times of work using the attendance management system.

Late Arrival, Leaving Early and Absence

1. A worker who arrives late, leaves early, is absent, or leaves the workplace for private reasons during working hours shall notify the head of their department in advance and obtain approval. If advance notice is impossible for an unavoidable reason, the worker shall notify the department head promptly afterwards and obtain approval.
2. In the cases of the preceding paragraph, wages for the time not worked are deducted in principle as set out in Article 38.
3. A worker absent for 4 or more consecutive days due to injury or illness shall submit a medical certificate.

Working Hours and Break Times

1. Scheduled working hours are 40 hours a week and 8 hours a day.
2. The start and end times of work and the break time are as follows. They may be moved earlier or later for business reasons or other unavoidable circumstances, in which case workers are notified by the previous day.
   1. Start of work: 9:00 a.m.
   2. End of work: 6:00 p.m.
   3. Break time: 12:00 noon to 1:00 p.m.

Days Off

1. Days off are as follows.
   1. Saturdays and Sundays
   2. National holidays (the following day when a holiday falls on a Sunday)
   3. Year-end and New Year holidays (December 29 to January 3)
   4. Other days the Company designates
2. Of the days off in the preceding paragraph, Sunday is the statutory day off.
3. When the Company finds it necessary for business reasons, it may, in advance, swap a day off in paragraph 1 for another day.

Overtime and Work on Days Off

1. For business reasons, the Company may have workers work beyond the scheduled working hours in Article 21 or on the days off in Article 22.
2. For work beyond the statutory working hours or on the statutory day off, the Company concludes in advance a written labor-management agreement with the representative of the majority of workers and files it with the competent Labor Standards Inspection Office.
3. Pregnant women and women within one year after childbirth ("expectant and nursing mothers") who so request, and workers under 18, are not required to work overtime, on days off or late at night (10:00 p.m. to 5:00 a.m.) under paragraph 2.
4. When there is a temporary need due to a disaster or other unavoidable cause, the Company may have workers work outside scheduled hours or on days off beyond the limits in paragraphs 1 to 3. Even then, expectant and nursing mothers who so request are not required to work overtime or on days off.

Work Interval

1. In every case, each worker is given a continuous rest period of at least 11 hours between the end of one day's work and the start of the next, except in a disaster or other unavoidable case.
2. If the rest period in the preceding paragraph ends after the scheduled start time of the next day's work, the time from that start time to the end of the rest period is deemed to have been worked.

Annual Paid Leave

1. A worker who has worked continuously for six months from the hiring date and attended at least 80% of the scheduled working days is granted 10 days of annual paid leave. For each further year of continuous service in which the worker attends at least 80% of the scheduled working days, the worker is granted the number of days below according to length of service.

   Length of service	6 mo.	1 yr 6 mo.	2 yr 6 mo.	3 yr 6 mo.	4 yr 6 mo.	5 yr 6 mo.	6 yr 6 mo. +
   Days granted	10	11	12	14	16	18	20

2. Notwithstanding the preceding paragraph, a worker whose scheduled weekly working hours are under 30 and who is scheduled to work four days a week or less (216 days a year or less where working days are set other than by the week) is granted the number of days below according to scheduled working days and length of service.

   Days per week (days per year)	6 mo.	1 yr 6 mo.	2 yr 6 mo.	3 yr 6 mo.	4 yr 6 mo.	5 yr 6 mo.	6 yr 6 mo. +
   4 (169 to 216)	7	8	9	10	12	13	15
   3 (121 to 168)	5	6	6	8	9	10	11
   2 (73 to 120)	3	4	4	5	6	6	7
   1 (48 to 72)	1	2	2	2	3	3	3

3. Annual paid leave is taken at the time the worker requests in advance. If leave at that time would disrupt the normal operation of the business, the Company may have the worker take it at another time.
4. Notwithstanding the preceding paragraph, by written agreement with the workers' representative, the Company may designate in advance the timing of the leave days each worker holds beyond five days.
5. For a worker granted 10 or more days of annual paid leave, the Company, after hearing and respecting the worker's views, designates in advance the timing of five of those days, to be taken within one year of the grant date. Days the worker has taken on request or under the preceding paragraph are deducted from the five days.
6. In calculating the attendance rate in paragraph 1, periods of annual paid leave, maternity leave, childcare and family care leave under the Child Care and Family Care Leave Act, and leave for treatment of a work-related injury or illness are treated as days attended.
7. Annual paid leave not taken within one year of the grant date may be carried over and taken until two years after the grant date. Where both carried-over and newly granted leave are available, the carried-over leave is used first.
8. The Company notifies each worker of the remaining days of annual paid leave as of each wage closing date on the pay statement.

Granting Annual Paid Leave by the Hour

1. Under a written agreement with the workers' representative, up to five days a year of the annual paid leave in the preceding article may be granted by the hour ("hourly leave").
2. For hourly leave, one day of annual paid leave equals 8 hours. Hourly leave is granted in units of one hour.
3. Wages for hourly leave are the hourly amount of the normal wages paid for working the scheduled hours, multiplied by the hours of leave taken.
4. Paragraphs 4 and 5 of the preceding article do not apply to hourly leave.

Maternity Leave

1. A female worker due to give birth within six weeks (14 weeks for a multiple pregnancy) is granted leave on request.
2. A female worker within eight weeks after childbirth is not permitted to work.
3. Notwithstanding the preceding paragraph, a female worker more than six weeks after childbirth may, on request, be assigned to work that a doctor finds will not harm her.

Measures to Maintain Mothers' Health

1. When a female worker who is pregnant or within one year after childbirth applies to receive health guidance or a health examination under the Maternal and Child Health Act during scheduled working hours, the Company allows hospital visits during working hours as follows.
   1. Before childbirth: once every four weeks up to week 23 of pregnancy, once every two weeks from week 24 to 35, and once a week from week 36 until childbirth; if a doctor or midwife ("doctor") instructs otherwise, the time needed under that instruction
   2. After childbirth (within one year): the time needed under the doctor's instruction
2. When such a female worker reports that a doctor has given guidance on her working hours or other matters based on health guidance or an examination, the Company takes measures to follow that guidance, such as easing commuting, extending breaks, reducing work, shortening working hours or granting leave.

Childcare Time and Menstrual Leave

1. A female worker raising a child under one year old is granted, on request, childcare time of 30 minutes twice a day in addition to break time.
2. A female worker for whom work on days of menstruation is extremely difficult is granted leave for the period needed on request.

Maternity Protection

1. On application by a female worker who is pregnant or within one year after childbirth, the Company secures time for health guidance or examinations under the Maternal and Child Health Act and takes the measures needed to follow the instructions of a doctor or midwife.
2. A female worker raising a child under one year old is granted, on request, childcare time of 30 minutes twice a day in addition to break time.
3. A female worker for whom work on days of menstruation is extremely difficult is granted leave for the period needed on request.

Childcare and Family Care Leave

1. Workers who need them may use childcare leave, postnatal paternity leave, family care leave, sick/school-event leave for children, family care days off, limits on non-scheduled work, overtime and late-night work for childcare and family care, reduced working hours and other measures under the Child Care and Family Care Leave Act ("childcare and family care leave").
2. Childcare and family care leave is governed by the separate "Rules on Childcare and Family Care Leave".

Fertility Treatment Leave

1. A worker who requests leave for fertility treatment is granted up to 5 days of leave a year.
2. A worker who requests time off for fertility treatment may take up to one year of leave within the five consecutive business years (April 1 to March 31) that include the business year in which the leave begins.

Congratulatory and Condolence Leave

1. On application, workers are granted congratulatory and condolence leave as follows.
   1. The worker's own marriage: 5 days
   2. Childbirth by the worker's spouse: 2 days
   3. Death of the worker's spouse, child or parent: 5 days
   4. Death of the worker's sibling or grandparent, or the spouse's parent or sibling: 2 days

Leave for Jury Duty and Election Candidacy

1. A worker who becomes a lay judge or substitute lay judge, or a lay judge candidate, is granted leave as follows.
   1. As a lay judge or substitute lay judge: the days needed
   2. As a lay judge candidate: the time needed
2. A worker who becomes a candidate in an election for the national Diet or a local assembly is granted the days of leave needed for campaigning during the election campaign period.

Components of Wages

1. Wages consist of the following.
   1. Base salary
   2. Allowances: commuting allowance and position allowance
   3. Premium wages: premium wages for overtime work, work on days off and late-night work

Base Salary

Base salary is decided individually, taking into account the worker's duties, skills, performance, age and other factors.

Commuting Allowance

A commuting allowance equal to the actual cost of commuting is paid, up to ¥50,000 a month.

Position Allowance

1. A position allowance is paid to workers in the following positions:
   General manager: ¥50,000 a month Manager: ¥30,000 a month Supervisor: ¥10,000 a month
2. On promotion, the allowance is paid from the wage month that includes the date of appointment, and the previous position allowance is not paid for that month.
3. On demotion, the new allowance is paid from the wage month after the one that includes the date of appointment.

Qualification Allowance

A qualification allowance is paid to workers who hold the following qualifications and perform the related duties:
Health officer: ¥10,000 a month

Family Allowance

A family allowance is paid to workers who support the following family members:
Each child under 18: ¥10,000 a month

Components of Wages and Allowances

1. Wages consist of base salary, allowances and premium wages. Base salary is decided individually, taking into account the worker's duties, skills, performance and other factors.
2. A commuting allowance equal to the actual cost of commuting is paid, up to ¥50,000 a month.
3. A position allowance is paid to workers in the following positions:
   General manager: ¥50,000 a month Manager: ¥30,000 a month Supervisor: ¥10,000 a month

Premium Wages

1. Premium wages are paid for overtime work, work on days off and late-night work at the following rates.
   1. Overtime work (work beyond the statutory working hours): 25% for up to 60 hours a month and 50% for hours beyond 60 a month; the month starts on the first day of each wage calculation period
   2. Work on the statutory day off: 35%
   3. Late-night work (10:00 p.m. to 5:00 a.m.): 25%
2. Premium wages are calculated as follows.
   1. Overtime: (base salary + position allowance) ÷ average scheduled working hours per month × 1.25 (1.50 for hours beyond 60 a month) × hours of overtime
   2. Work on the statutory day off: (base salary + position allowance) ÷ average scheduled working hours per month × 1.35 × hours worked
   3. Late-night work: (base salary + position allowance) ÷ average scheduled working hours per month × 0.25 × hours of late-night work
3. The average scheduled working hours per month in the preceding paragraph are calculated as: (365 − annual scheduled days off) × scheduled daily working hours ÷ 12.

Wages for Leave

1. For annual paid leave, the normal wages paid for working the scheduled hours are paid. The same applies to congratulatory and condolence leave.
2. Maternity leave, leave for maternal health care, childcare time, menstrual leave, childcare and family care leave and leave for jury duty and election candidacy are unpaid.
3. No wages are paid during leave of absence under Article 9.

Wages during Temporary Closure

If the Company has a worker stay off work on a scheduled working day for reasons attributable to the Company, it pays 60% of the average wage under Article 12 of the Act for each day. If the worker is kept off for part of a day, wages of at least 60% of the average wage are guaranteed for that day under Article 26 of the Act.

Deductions for Absence

1. For absence, late arrival, leaving early and private outings, wages for the days or hours concerned are deducted from base salary.
2. The hourly amount to be deducted is base salary ÷ average scheduled working hours per month (calculated by the formula in Article 35, paragraph 3).

Wage Calculation Period and Payday

1. Wages are calculated up to the last day of each month and paid on the 25th of the following month. If payday falls on a day off, wages are paid on the preceding day.
2. For a worker who joins or leaves partway through a calculation period, monthly wages are prorated by the scheduled working days in that period.

Payment and Deductions of Wages

1. Wages are paid directly to the worker, in currency and in full.
2. With the worker's consent, wages are paid by transfer to a savings account or securities account at a financial institution the worker designates.
3. The following are deducted from wages.
   1. Withholding income tax
   2. Resident tax
   3. The insured person's share of health insurance, employees' pension insurance and employment insurance premiums
   4. Items agreed to be deducted from wages in a written agreement with the workers' representative

Emergency Payment of Wages

1. If the worker or a person supported by the worker's income falls under any of the following and the worker requests it for that reason, wages for work already done are paid even before payday.
   1. Returning home for one week or more for an unavoidable reason
   2. Marriage or death
   3. Childbirth, illness or disaster
   4. Leaving employment by resignation or dismissal

Wage Increase

1. Wage increases are given on April 1 each year to workers with good performance and conduct. They may not be given if the Company's results decline significantly or for other unavoidable reasons.
2. A worker with outstanding results may receive a wage increase notwithstanding the preceding paragraph.
3. The amount of each increase is decided individually, taking into account the worker's performance and other factors.

Bonus

1. Bonuses are paid in principle each year in June and December to workers employed on the payment date, taking into account the Company's results. Payment may be postponed or withheld if the Company's results decline significantly or for other unavoidable reasons.
2. The amount of each bonus is decided individually, taking into account the Company's results and the worker's performance.

Retirement Age

1. The retirement age is 60. A worker retires at the end of the month in which the worker reaches that age.
2. Notwithstanding the preceding paragraph, a worker who wishes to continue working after the retirement age and does not fall under any ground for dismissal or retirement is kept in continued employment until age 65.

Resignation and Retirement

1. In addition to the preceding article, a worker retires in any of the following cases.
   1. The worker applies to resign and the Company approves, or 14 days have passed since the worker submitted a notice of resignation
   2. For a fixed-term worker, the term expires
   3. The leave period under Article 9 ends and the reason for leave remains
   4. The worker dies
2. A worker who intends to resign for personal reasons shall endeavor, in principle, to give notice at least 30 days before the intended date, so that work can be handed over.
3. When a worker leaves or is dismissed, the Company issues without delay, on request, a certificate stating the period of employment, type of work, position, wages or reason for leaving.

Dismissal

1. A worker may be dismissed in any of the following cases.
   1. The worker's attendance and conduct are extremely poor, with no prospect of improvement, and the worker cannot fulfil the responsibilities of a worker.
   2. The worker's performance or efficiency is extremely poor, with no prospect of improvement, and the worker is unfit for work, for example because a transfer to other duties is not possible.
   3. A work-related injury or illness has not healed three years after treatment began, and the worker receives or becomes entitled to an injury and disease compensation pension (including where the Company has paid a lump-sum compensation).
   4. The worker cannot perform the work because of a mental or physical disability.
   5. The worker's efficiency or attitude during the probationary period is extremely poor and the worker is found unsuitable.
   6. Facts falling under the grounds for disciplinary dismissal in Article 59, paragraph 2 are found.
   7. The business must be reduced or a department closed for operational reasons, a natural disaster or a similar unavoidable cause, and a transfer to other duties is difficult.
   8. Any other unavoidable reason equivalent to the above.
2. When dismissing a worker under the preceding paragraph, the Company gives at least 30 days' notice, or pays at least 30 days' average wages as an allowance in lieu of notice. The notice period may be shortened by the number of days for which the allowance is paid.
3. The preceding paragraph does not apply to a disciplinary dismissal under Article 58, paragraph 1, item 4 approved by the Labor Standards Inspection Office, or to the dismissal of any of the following.
   1. Workers hired on a daily basis (except those employed continuously for more than one month)
   2. Workers employed for a fixed term of two months or less (except those employed beyond that term)
   3. Workers on probation (except those employed for more than 14 days)
4. When a worker dismissed under paragraph 1 requests it, the Company issues a certificate stating the reason for dismissal.

Severance Pay

1. The Company concludes a retirement allowance mutual aid contract for workers with the Organization for Workers' Retirement Allowance Mutual Aid under the Smaller Enterprise Retirement Allowance Mutual Aid Act. For workers on probation, the contract is concluded after the probationary period.
2. Severance pay is paid directly by the Organization to the worker (or to the bereaved family on retirement by death).
3. The amount of severance pay is calculated under the Act and the rules of the Organization.

Terms for Severance Pay

1. When a worker leaves or is dismissed, severance pay is paid under this chapter. All or part of it may be withheld from a worker dismissed for disciplinary reasons under Article 59, paragraph 2.
2. For workers in continued employment, severance pay is paid at the retirement age, and none is paid for the subsequent re-employment.

Amount of Severance Pay

1. Severance pay is the base salary at the time of leaving or dismissal multiplied by the rate below for the length of service.

   Years of service	Under 5	5 to 10	11 to 15	16 to 20	21 to 25	26 to 30	31 to 35	36 to 40	41 +
   Rate	1.0	3.0	5.0	7.0	10.0	15.0	17.0	20.0	25.0

2. Periods of leave of absence under Article 9 are not counted in the length of service, except where the leave is for the Company's reasons.

Method and Time of Payment

Severance pay is paid to the worker (or to the bereaved family on retirement by death) within two months of the day the reason for payment arises.

Severance Pay

The workers eligible for severance pay, how it is decided, calculated and paid, and when it is paid are set out in the separate Severance Pay Rules.

Conversion to an Indefinite-Term Contract

1. A worker on a fixed-term contract whose total contract period exceeds five years may, by applying in the form the Company specifies, convert to an indefinite-term contract from the day after the current contract ends.
2. The total contract period counts fixed-term contracts starting on or after April 1, 2013. If there has been a gap of six months or more with no contract, for example after a contract expired, earlier contract periods are not counted.
3. The working conditions in these Rules continue to apply after the conversion. If the worker is older than the retirement age in Article 44 at conversion, the worker's retirement age is 65, and the worker retires at the end of the month in which that age is reached.

Safety Rules

1. The Company takes the measures needed to secure and improve workers' safety and health and to create a comfortable workplace.
2. Workers shall follow safety and health laws and the Company's instructions and work with the Company to prevent industrial accidents.
3. In particular, workers shall comply with the following.
   1. To check machinery, equipment and tools before work, and to report any problem promptly to the Company and follow its instructions.
   2. Not to remove or disable safety devices.
   3. To wear protective equipment for work that requires it.
   4. For persons under 20, not to enter areas where smoking is allowed.
   5. Not to take anyone who does not wish to be exposed to second-hand smoke into a smoking area.
   6. Not to enter restricted areas.
   7. To keep the workplace tidy and not to place objects in passageways, emergency exits or near fire-fighting equipment.
   8. On discovering a fire or other emergency, to take immediate action, report to the head of their department and follow instructions.

Health Examinations

1. Workers receive a health examination at hiring and once a year (every six months for those engaged in late-night work).
2. Workers engaged in hazardous work specified by law also receive regular examinations on special items.
3. When the results of the examinations make it necessary, the Company may order measures needed to protect health, such as a temporary ban on work, shorter working hours or a change of assignment.

Safety, Health and Health Examinations

1. The Company takes the measures needed to secure and improve workers' safety and health. Workers shall follow safety and health laws and the Company's instructions and work with the Company to prevent industrial accidents.
2. Workers receive a health examination at hiring and once a year (every six months for those engaged in late-night work). When the results make it necessary, the Company may order measures needed to protect health, such as shorter working hours or a change of assignment.
3. The Company gives workers the safety and health training needed for their work at hiring and when their work changes.
4. The Company handles information on workers' physical and mental condition appropriately.

Face-to-Face Guidance for Persons Working Long Hours

1. The Company keeps track of workers' working hours.
2. A worker found to have accumulated fatigue from long working hours receives, on application, face-to-face guidance by a doctor.
3. When the guidance makes it necessary, the Company may order measures needed to protect health, such as a temporary ban on work, shorter working hours or a change of assignment.

Stress Check

1. Workers receive a test by a doctor, public health nurse or similar professional once a year to assess psychological stress (stress check).
2. A worker found by the professional to be under high stress and in need of guidance receives, on application, face-to-face guidance by a doctor.
3. When the guidance makes it necessary, the Company may order measures such as a change of workplace or work, shorter working hours or fewer late-night shifts.

Appropriate Handling of Information on Workers' Health

The Company handles information on workers' physical and mental condition appropriately.

Safety and Health Training

1. Workers receive the safety and health training needed for their work at hiring and when their work changes, for example on reassignment.
2. Workers shall comply with what they learn in safety and health training.

Accident Compensation

If a worker is injured, falls ill or dies for work-related reasons or while commuting, accident compensation is provided under the Act and the Industrial Accident Compensation Insurance Act.

Training

1. The Company provides workers with the training needed to improve the knowledge and skills required for their work.
2. A worker instructed by the Company to attend training shall attend unless there is a special reason.
3. The instruction is given to the worker in writing at least one week before the training starts.

Commendations

1. The Company may commend a worker in any of the following cases.
   1. The worker has made a useful invention or idea that contributed to the Company's results.
   2. The worker has worked faithfully for many years with excellent results, setting an example for others.
   3. The worker has worked continuously for many years without accidents.
   4. The worker has made a social contribution that brings honor to the Company and its workers.
   5. Any other good deed or meritorious service equivalent to the above.
2. Commendations are presented, in principle, on the Company's founding anniversary, with a certificate and a cash award.

Types of Disciplinary Action

1. If a worker falls under any item of the next article, the Company takes disciplinary action of the following types according to the circumstances.
   1. Reprimand: the worker submits a written apology and is warned for the future.
   2. Pay reduction: the worker submits a written apology and pay is reduced. A single reduction does not exceed half of one day's average wage, and the total does not exceed one tenth of the total wages for one pay period.
   3. Suspension: the worker submits a written apology and is suspended from work for up to 7 days without pay.
   4. Disciplinary dismissal: the worker is dismissed immediately without notice. If the competent Labor Standards Inspection Office approves, the allowance in lieu of notice (30 days' average wages) is not paid.

Grounds for Disciplinary Action

1. A worker who falls under any of the following receives a reprimand, pay reduction or suspension according to the circumstances.
   1. Unauthorized absence of three days or more without a justifiable reason.
   2. Frequent absence, late arrival or leaving early without a justifiable reason.
   3. Causing damage to the Company through negligence.
   4. Disturbing order and discipline in the Company through misconduct.
   5. Violating Article 11 or Articles 12 to 16Article , Article or Article 16, paragraph 4.
   6. Any other violation of these Rules or improper conduct equivalent to the above.
2. A worker who falls under any of the following is dismissed for disciplinary reasons. Depending on the worker's usual conduct and other circumstances, ordinary dismissal under Article 46, or a pay reduction or suspension under the preceding article, may be chosen instead.
   1. Being hired by falsifying important parts of one's background.
   2. Unauthorized absence of 14 days or more without a justifiable reason, without responding to demands to return to work.
   3. Repeated unauthorized late arrival, leaving early or absence without a justifiable reason, not corrected after three warnings.
   4. Frequently disobeying work instructions or orders without a justifiable reason.
   5. Causing serious damage to the Company intentionally or through gross negligence.
   6. Committing, on Company premises, an act that violates the Penal Code or other criminal laws, where the criminal facts are clear (except minor violations).
   7. Seriously disturbing order or discipline in the Company through misconduct.
   8. Showing no prospect of improvement in attitude despite several disciplinary actions.
   9. Violating Articles 12 to 16Article or Article 16, paragraph 4 in a way found to be malicious.
   10. Using the Company's facilities or goods for purposes other than work without permission.
   11. Using one's position for personal gain, or improperly receiving or demanding money, goods or entertainment from business partners.
   12. Misconduct in private life, or unjustified defamation of the Company, that damages its reputation and seriously harms its business.
   13. Disclosing important business secrets of the Company without a justifiable reason, causing damage or obstructing normal operations.
   14. Any other improper conduct equivalent to the above.

Protection of Whistleblowers

1. When a worker consults or reports on organizational or individual violations of law, the Company handles the matter as set out separately.
2. The Company does not dismiss or otherwise treat a worker disadvantageously because the worker made such a consultation or report.

Side Jobs and Concurrent Employment

1. Workers may engage in work for other companies outside their working hours.
2. Based on the worker's notification that they will engage in such work, the Company may prohibit or restrict it if any of the following applies.
   1. It interferes with the worker's work for the Company
   2. Company secrets would be disclosed
   3. It involves conduct that damages the Company's reputation or destroys trust
   4. It competes with and harms the Company's interests
3. A worker with a side job shall report to the Company the working hours at the other employer and any other matters the Company requests.